Perella offering equity in return for commitment

Joe Perella's long non-compete agreements suggest partners will receive hefty equity shares in his new firm.

Perella is reportedly luring partners to work for his new boutique, Perella Weinberg Partners, with non-compete agreements of 'less than five years', according to Financial News. But Jane Mann, head of employment law at UK firm Fox Williams, says non-competes of any more than six months are unusual in the City of London.

"Most of the non-compete agreements at investment banks last three to six months," says Mann. "The fact that Perella appears to be going for non-competes lasting several years suggests he's offering a very big slice of equity in return for commitment."

Non-compete agreements prevent ex-employees from competing directly for clients for a specified period of time after they leave the company.

It's easier to impose non-compete agreements on partners than on standard employees, says Mann. But nowadays even City law firms rarely impose non-competes for more than 12 months, she says.